Removing a CDM Programme Activity
If a CDM Programme Activity (CPA) is suspected of being erroneously included under a Programme of Activities (PoA), it may be excluded, and all CERs issued to the CPA may need to be replaced.
The first step in such event is that the Secretary of the Executive Board will be notified:
If a DNA involved in the PoA or a Board member identifies any error that disqualifies a CPA from inclusion in the PoA, the Secretary of the Board shall be notified (EB 32, Annex 39, paragraph 12).
The Board then decides whether to exclude the CPA from the PoA:
The Board shall decide whether to exclude the CPA from the PoA with immediate effect. The coordinating/managing entity, the DOE that included the CPA and the DNAs involved shall be informed that the error has been found as well as of the decision of the Board (EB 32, Annex 39, paragraph 13).
If a CPA is excluded, it cannot be re-included in that or any other PoA, or be registered as a project activity in its own right:
The consequences of the exclusion are that ... The CPA that has been excluded shall not be re-included again in that or any other PoA, or qualify as a CDM project activity (EB 32, Annex 39, paragraph 14(a)).
The designated operational entity (DOE) that included the CPA in the PoA is responsible for replacing any certified emission reductions (CERs) issued to it:
The DOE that included the CPA, shall acquire and transfer, within 30 days of the exclusion of the CPA, an amount of reduced tonnes of carbon dioxide equivalent to the amount of CERs issued to the PoA as a result of the CPA having been included, to a cancellation account maintained in the CDM registry by the Executive Board (EB 32, Annex 39, paragraph 14(b)).
In addition, all CPAs under the PoA will be subject to a review:
The further inclusion of new CPAs and issuance of CERs to that PoA shall be put on hold and all CPAs already submitted shall be reviewed to determine if any other CPA disqualifies (EB 32, Annex 39, paragraph 14(c)).
The review is conducted by a DOE. The DOE that performed validation, registration, inclusion or verification functions is not eligible to perform this review:
A DOE, that has not performed validation, registration, inclusion or verification functions with regard to this PoA, shall conduct the review referred to in 15 [sic] (c) and submit a review report to the Board (EB 32, Annex 39, paragraph 15).
The Executive Board will then establish a team to consider the DOE's report:
A team shall be established by the Board to analyse the DOE review report and make a recommendation to the report (EB 32, Annex 39, paragraph 16).
Based on the report, the Executive Board will decide whether to exclude the additional CPAs:
The Board will decide whether to exclude additional CPAs and if so, the consequences described in paragraph 15 (a) and (b) apply. Only once all required cancellations have been confirmed, the hold described in 15 (c) shall be lifted (EB 32, Annex 39, paragraph 17).